Burry Goes Public With His AI Skepticism
Michael Burry — best known for predicting the 2008 housing crash — has launched a new Substack newsletter called Cassandra Unchained, priced at $379 per year. The move follows his decision to deregister Scion Asset Management and marks his return to long-form commentary after years of cryptic posts on X.
Burry is using the platform to outline a detailed thesis he has hinted at for months: that the AI trade has entered bubble territory, and that markets are repeating several patterns seen before major corrections.
His message is consistent: investors are extrapolating exponential growth and ignoring profitability risks, much like the dot-com era. He argues that massive capital spending cycles, especially in AI infrastructure, resemble past manias where investors assumed new technologies would permanently rewrite the economic landscape.
Connecting Today’s AI Euphoria to Past Market Bubbles
Burry has drawn explicit parallels between:
- Late-1990s tech stocks, where companies were valued on potential rather than earnings
- Mid-2000s housing, where warnings were dismissed until the bubble burst
- Today’s AI megacaps, which he believes are priced for perfection with little room for error
His core argument: the market is once again treating high growth as guaranteed and assuming that enormous capex will produce equally enormous returns. He has criticized what he sees as overly confident official commentary that downplays bubble risk — similar, in his view, to what happened before the housing collapse.
Burry has previously disclosed bearish positions or skepticism toward major AI leaders, including Nvidia and Palantir, both central to this year’s AI-driven market narrative.
Why It Matters for Investors
Burry’s newsletter underscores a rising divergence in market sentiment:
- AI bulls argue the technology is already monetizing at scale.
- Skeptics warn the spending cycle is ahead of earnings and may face a macro slowdown.
With AI capex at historic highs and valuations stretched across semiconductor, cloud, and data-center names, his bearish thesis will likely attract substantial attention — especially as volatility rises across Big Tech.
WSA Take
Burry’s return to long-form analysis lands at a moment when investors are debating whether AI is entering its “mature phase” or showing early signs of overheating. His warnings won’t shift the trend alone — but they add pressure to an already fragile sentiment around AI spending, profitability, and valuation discipline.
Read our latest coverage on the U.S. Government Grip on U.S. Steel.
Explore more market insights on the Wall Street Access homepage.
Disclaimer
WallStAccess does not work with or receive compensation from any public companies mentioned. Content is for informational and educational purposes only and is not investment advice. Always conduct your own research.
